Spirit Airlines Files for Chapter 11 Bankruptcy After JetBlue Merger Fails

Nov 18, 2024, 10:34 AM

Spirit Airlines Inc. has filed for Chapter 11 bankruptcy protection in a New York court, following years of financial losses and a failed merger with JetBlue Airways Corp. The airline, known for its budget travel model, has struggled with mounting debts and a significant drop in share value, with shares plummeting 61% after Frontier Group Holdings Inc. reportedly withdrew its acquisition bid. Spirit aims to slash $1.1 billion in debt while continuing operations. The filing comes after the carrier faced challenges from increased competition, a long run of quarterly losses, and the impact of the travel industry's recovery from the Covid-19 pandemic.